According to sources familiar with the matter who spoke to the media, the prominent video-sharing platform Rumble is actively advancing a major strategic move, planning to acquire German data center operator Northern Data AG through an all-stock transaction. If this highly anticipated merger is finalized, it would mark a deep integration of two tech companies that both receive backing from stablecoin giant Tether Holdings Ltd.
Based on the currently disclosed transaction framework, this acquisition will be completed via a stock-swap, with Northern Data's valuation expected to be below its current market valuation. Notably, as of the most recent trading day, the German data center operator's market capitalization stands at approximately $894 million. Multiple internal sources who requested anonymity stated that as negotiations have entered the final stages, it is highly likely the two parties will officially announce this cooperation agreement within the coming days.
The backdrop of this merger is quite noteworthy. Both companies central to the deal maintain close capital ties with Tether, a key player in the cryptocurrency space. As the world's largest stablecoin issuer, Tether has consistently increased its strategic investments in digital infrastructure in recent years. This capital connection has also created favorable conditions for the smooth progress of this transaction.
From a strategic perspective, this acquisition will significantly accelerate Rumble's business transformation process. Although US-based Rumble is known for its video platform business, it has been actively working to expand into the cloud computing services market in recent years. By integrating Northern Data's expertise in data center construction and operation, Rumble will gain crucial technical infrastructure support, thereby laying a solid foundation for its entry into the cloud computing sector.
Northern Data, as a leading European provider of high-performance computing solutions, possesses deep accumulated experience in data center design, construction, and operation. The company specifically focuses on providing computing power support for cutting-edge fields such as artificial intelligence, blockchain, and big data analytics. These specialized technical resources are precisely the core elements urgently needed for Rumble to achieve its business expansion.
Industry observers point out that if this deal is successfully completed, it will create a comprehensive technology enterprise combining content distribution capabilities with computing power infrastructure. Amid the accelerating push for digital transformation, this vertical integration model could reshape the competitive landscape in related industries. Simultaneously, this also reflects Tether's strategic intent to foster synergies among its portfolio companies.
Notably, opting for an all-stock transaction indicates that both parties are focused on long-term value creation rather than short-term gains. This arrangement can both maintain the equity participation of Northern Data's existing shareholders in the new entity and facilitate team integration and cultural amalgamation between the two companies post-transaction.
As global demand for cloud computing services continues to grow and AI application scenarios keep expanding, high-performance data center resources are becoming crucial strategic assets for the digital economy's development. Through this acquisition, Rumble will not only rapidly acquire key infrastructure resources but also secure a more advantageous position in the increasingly competitive cloud computing market.
As of the time of publishing, the relevant parties have not issued official comments on the transaction details. However, it is believed that the deal has received principled support from major shareholders, and the specific terms of the final agreement will likely be revealed in the near future.
